Want To Be The Next Amazon? Go Cross-Border From Day One

E-commerce is slowly shifting from a national to an international model. “Advances in logistics, shipping and global smartphone penetration have created a perfect storm where e-commerce companies can thrive internationally,” writes Hans Tung for Tech Crunch. He explains that consumers want to buy direct for the best prices; shipping companies have improved international service; and smartphones allow greater access to the internet with 4 billion anticipated to be online by 2020. “Right now, cross-border e-commerce mostly flows from China to the U.S. and Europe,” Tung explains. Big players like Amazon and eBay develop relationships with large Chinese merchants, while small players buy goods on Chinese sites like Alibaba to resell on eBay or Amazon. Tung concludes, “it will take a new kind of company to take Chinese export e-commerce to the mass market.” Most foreign brands still struggle with reaching Chinese consumers online along with shipping, customs clearance and logistics. China views increasing imports as a way to build influence. – YaleGlobal